Payment congestion – what is it and how to avoid it?

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Czym są zatory platnice? Jak ich uniknąć?

Payment congestion: what is it?

These are payment delays that can result from various reasons, such as financial difficulties, cash flow problems, inefficient accounting processes, or a deliberate decision by the company.

Avoiding late payments is essential for maintaining healthy business relationships and ensuring the company’s liquidity. This requires accurate payment tracking, effective cash flow management, payment process automation, and a proactive approach to financial risk management.

The Law on Payment Congestion regulates the timing of payment of invoices and financial obligations in business-to-business commercial transactions. Its purpose is to avoid excessive payment delays, protect the interests of suppliers, and promote fair practices. The main elements of such legislation are establishing maximum payment terms, penalties for late payment, rules for extending payment terms, information obligations, and protection of suppliers. 

The maximum payment term for the 2023 invoice is 60 days from the delivery date. The deadline can be extended, but this must be by the law and fairness to creditors.

What are the causes of payment congestion?

The causes of payment congestion can vary due to many factors.

Here are some of them:

It is worth identifying these causes and taking action to avoid payment congestion and effectively manage payments in the company.

Zatory płatnicze - co to?

Payment congestion, what is its threat?

Even single payment congestion can be a problem for both companies awaiting their payments and those that delay payments.

Here are some of them:

Therefore, it is essential to effectively manage payments to avoid these potential risks and ensure the company’s liquidity.

How do we deal with payment congestion?

Solutions to this problem require several vital steps:

INLOGICA has prepared a modification for the ERP systems Microsoft Dynamics AX 4, 2009, 2012 and Microsoft Dynamics 365, which prevents payment congestions by reporting overdue payments from customers and to suppliers. In case of an audit by the Office of Competition and Consumer Protection, we have full documentation to avoid messy fines.

Check out our application:

Our experts will answer all your questions.